By Cristal Cody
Tupelo, Miss., June 4 – Kennametal Inc. priced $300 million of 4.625% 10-year senior notes on Monday at a spread of 178 basis points over Treasuries, according to an FWP filing with the Securities and Exchange Commission.
The notes (Baa3/BBB-/BBB) were sold at 99.271 to yield 4.717%.
BofA Merrill Lynch and J.P. Morgan Securities LLC were the bookrunners. PNC Capital Markets LLC was a passive bookrunner.
Proceeds will be used for the repayment or redemption of the company’s 2.65% senior notes due 2019 and general corporate purposes.
Kennametal is a Latrobe, Pa., manufacturer, marketer and distributor of cutting tools, tooling systems, supplies and technical services and wear-resistant parts.
| Issuer: | Kennametal Inc.
|
| Amount: | $300 million
|
| Description: | Senior notes
|
| Maturity: | June 15, 2028
|
| Bookrunners: | BofA Merrill Lynch and J.P. Morgan Securities LLC
|
| Passive bookrunner: | PNC Capital Markets LLC
|
| Senior co-managers: | Citizens Capital Markets, Inc., Mizuho Securities USA LLC and MUFG
|
| Co-managers: | Commerz Markets LLC and U.S. Bancorp Investments, Inc.
|
| Coupon: | 4.625%
|
| Price: | 99.271
|
| Yield: | 4.717%
|
| Spread: | Treasuries plus 178 bps
|
| Call features: | Make-whole call at Treasuries plus 30 bps before three months prior to maturity; thereafter at par
|
| Trade date: | June 4
|
| Settlement date: | June 7
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
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